196 F INANC IAL Statements 05 Sect ion Ranhi ll Ut i l i t i es Berhad NOTES TO THE F INANC I AL STATEMENTS For the year ended 31 December 2022 16. INTANGIBLES (Contd.) Operating rights Operating rights represents rights issued to a subsidiary of the Group, Ranhill Water Technologies Thai Ltd. (“RWTT”) to operate two water treatment plants in Amata City Industrial Estate and Amata Nakorn Industrial Estate, both located in Thailand. Customer contracts Customer contracts represent existing medium-term contracts with the customers and meet the contractual-legal criterion for recognition as intangible assets. 17. RIGHT-OF-USE ASSETS Land and buildings RM’000 Motor vehicles RM’000 Office equipment RM’000 Total RM’000 Group as a lessee Carrying amount At 1 January 2022 20,757 1,711 899 23,367 Additions 3,085 5,033 44 8,162 Depreciation expenses for the year (Note 10) (4,741) (1,108) (432) (6,281) Lease modification (76) - - (76) Exchange differences 3 - - 3 At 31 December 2022 19,028 5,636 511 25,175 At 1 January 2021 6,433 2,534 112 9,079 Arise from acquisition of subsidiaries (Note 20) 5,709 - 998 6,707 Additions 9,922 - 202 10,124 Disposals (Note 10) (77) - - (77) Written off (Note 10) (297) - - (297) Depreciation expenses for the year (Note 10) (1,420) (823) (413) (2,656) Lease modification 516 - - 516 Exchange differences (29) - - (29) At 31 December 2021 20,757 1,711 899 23,367 The Group has lease contracts for various items of land and buildings, motor vehicles and other office equipment used in its operations. Leases of land and buildings generally have lease terms between 2 to 50 years while motor vehicles and other equipment generally have lease terms between 2 and 6 years. The lease arrangements generally do not allow for subleasing of the leased asset, unless there is a contractual right for the Group to sublet the lease asset to another party. The Group also has certain leases with lease terms of 12 months or less and leases that have been determined to be low value. The Group apply the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemption for these leases.
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